By James Wells
BRISBANE: PriceWaterHouse Coopers has been appointed as receiver and manager of Betta Stores Limited (BSL) and six of its subsidiaries after the retailer requested a trading halt on the Newcastle Stock Exchange yesterday.
According to a statement distributed yesterday evening, Phil Carter and David McEvoy of PriceWaterhouse Coopers were appointed as receivers and managers of BSL by the Commonwealth Bank of Australia (CBA).
PriceWaterhouse Coopers has been appointed as receiver and manager of six BSL subsidiaries – BSL Finance Pty Ltd, Betta Stores (Southern) Pty Ltd, Truscott Electronics Pty Ltd, Truscott Finance Pty Ltd, P.G.A & Associates Pty Ltd and A K Truscott Investments Pty Ltd.
Current.com.au believes that BSL and the six subsidiaries were forced into administration as they were secured by the CBA.
BSL’s franchise business is unaffected by the receivership, but has been taken over by a board-appointed voluntary administrators – John Greig and Simon Wallace-Smith of Deloitte who will also act as voluntary administrators of BSL and its 11 subsidiaries.
As a result of the company being placed into administration, the company’s shares have been suspended on the Newcastle Stock Exchange.
Current.com.au understands that receivers were appointed to the business, even though the company has paid back the CBA over $31 million in recent months.
The BSL board will remain in place to assist the administrators and receivers, but will have no control over the assets of the business.
An equity buyer is expected to be sought for the franchise business which is not affected by the receivership.